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Second phase of applications for GSPs may see relaxation in criteria such as minimum Rs 5 crore paid-up capital and Rs 10 crore average turnover in previous 3 fiscals

Several startups have been eye ing the opportunity of getting to directly interact with the Goods & Services Tax (GST) system to help enterprises file their returns once the GST regime rolls out, and they may now get the chance since the nodal agency in charge of the technological infrastructure for GST is considering relaxing the eligibility criteria for thirdparty service providers.

The GST Network (GSTN), which had shortlisted 34 GSPs (GST suvidha providers) from over 300 applicants in the first phase in December,is set to open the second phase of applications this month and is likely to revise certain criteria, according to sources aware of the matter.

The original criteria of a minimum paid-up (raised capital) of `5 crore and an average turnover of at least `10 crore in three previous financial years had left sev…

A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment.

Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council…

The government on Monday said there is no proposal under its consideration to review the foreign direct investment (FDI) policy in the multibrand retail sector.“No proposal is under consideration of the government to review the extant FDI policy on multi-brand retail,” Commerce and Industry Minister Nirmala Sitharaman said inawritten reply to the Lok Sabha.The current FDI policy permits overseas players to hold 51 per cent stake in an Indian retail company.So far, only one foreign player, Tesco, has received approval for opening stores under the multi-brand retail policy.Replying to a separate question, she said the government has been interacting with investors to identify issues for promoting FDI in food processing.